Rupee ends slightly firmer on inward remittances

Saturday, 14 October 2017 01:08 - - {{hitsCtrl.values.hits}}

Reuters: The rupee snapped a four-session decline to end slightly firmer on Friday, as dollar inflows due to inward remittances surpassed greenback buying by banks on behalf of oil importers, dealers said.

Dealers said the rupee was under pressure due to dollar demand from State-run Ceylon Petroleum Corp, which stocked up crude ahead of an expected fuel price hike.

The spot rupee which traded at 153.80 during the day ended at 153.65/75 per dollar, firmer from Thursday’s close of 153.72/80.

“The demand was there all through the day. State banks were not that active today and the rupee ended firmer due to inward remittances,” said a currency dealer, who requested anonymity.

Crude prices are expected to rise in the country after private fuel retailer Lanka IOC informed local media it is likely to increase rates as they have been selling at a loss.

The rupee has been under pressure since January after the Central Bank stopped defending the currency and started buying the dollar to build the country’s depleted foreign currency reserves.

The island nation saw Rs. 20.2 billion of net inflows into equities this year, as of Friday’s close, and Rs. 31.1 billion worth inflows into Government securities as of 4 October, official data showed.